According to the author Zaneldin
(2005), Claims in the construction projects, in general, are inevitable while
the result is the costly litigation of construction contract, overly
restrictive terms, plus the allocated risks. There are factors that increase
the likelihood of conflict among the parties in the claims of construction projects.
Construction claims are the disruptive claims in projects. By the minimum profits,
to bid the plans, there is a high competition for the contractors when it
comes to the maintenance of businesses. The Claim is a straightforward term that can be defined
as the compensation request for the damages which are incurred through any party for the contract. For a reason or
two in the construction industry, the
claims are happening everyday, which
could contribute the delaying projects and
increasing the cost. This happens for a time
extenion and additional expenses of construction. The contractor should
understand the leading causes of the
claims for the improvement of the success chances, as well as required enough information when the applications are submitted. Claims of construction
in projects from the perspective of the contractors face the risks of multitude.
Inflation, accidents, severe shortages of material, and unforeseen conditions
are some examples of risks. All these types of risk
have Monterey consequences, which might
be harmful to the profitability of contractors.
In general, Claims of construction projects, the contractor might create a
variation regarding these risks, project scheduled along with the methods (Zaneldin , 2005).
Claims in
construction projects (Saudi Arabia)
According to the author Husein, (2013) there are various claims in the construction
projects in Saudi Arabia. The largest exporter of oil in the world is Saudi Arabia. The construction sector of Saudi Arabia has seen the necessary increases in activity, where the
economy of Saudi Arabia is also on the rise. There are following trends in the claims
of the construction projects. By the growing Saudi infrastructures, the
government of Saudi Arabia is actively concerned
and its indication presents the concern that
remains at the forefront of the decision making of Saudi Arabia. In Saudi Arabia, the focus of the government is to
increase the growth as the population increases. In the construction industry
of Saudi Arabia, the claims are the primary sources. Through various participants
of the projects, the applications in the
construction projects are considered as one of the most disruptive events. Development
ambition is a large part of Saudi Arabia, where the infrastructure of the
construction is in the form of various other commercials, as well as medical projects.
Claim of Construction in projects in Saudi Arabia is considered as one of the most important economic sectors, as well as
uniqueness to this sector is a diversity of experiences along with the
complexity with a number of other areas,
making it more sensitive to variations in an economic activities along with
social as well as demographic factors. Claims of the Construction industry in
Saudi Arabia is a dynamic, complex, and fragmented process together with the
traditional methods while the systems of construction industry use technology in isolation along with there
are miss integration as well as non-interoperability
among all Architecture (Husein, 2013).
Claims
Classification
According to the author Khekale &et al. (2015), the classification
of the claims are given below. These claims
are classified through the related parties, rightly claimed, characteristic of claim,
and the legal basis (Khekale & et.al, 2015)
Contractual of Claim in Construction Industry
By the specific clauses of a contract,
the Contractual Claim falls within provisions
which are that are well accepted by the standard
and entitle for the employers as well as contractors to claim the appropriate
compensations for examples the ground conditions, variations, and valuation
along with the delay in the inspecting of the finished work (Khekale & et.al, 2015)
Extra- Contractual of Claim in Construction Industry
The Extra-Contractual Claim has
no specific contacts within the ground, where the results of these form of the
breaches contracts might be expressed and implied. Extra Contractual claims permit tithe
owner that has ordered to the contractor for doing some works often after
construction. As a part of his responsibility but not included in the original contract, while contractor performance
work should be as mentioned through contract
documents. However, a contractor believes that he is performing extra Contractual.(Khekale &et.al, 2015)
Ex-Gratia of Claim in Construction Industry
There is no exiting of ground in the
contract as well as in law, but the beliefs
of the contractors have the rights for
the moral grounds in the Ex-Gratia Claim. The additional cost is incurred when the results are rapidly increasing the prices (Khekale & et.al, 2015).
Extension of Time of Claim in Construction Industry
The last classification of the
claim is the extension of the claims wherein this claims each construction contracts
specifies the date for the contractors to complete their work. Through the
Employer for the creation of delays, the purpose of specifying the date is to facilitate
it form the damages (Khekale & et.al, 2015).
Causes of
Construction of Claim in Construction Industry
According to Hadikusumo &et al. (2015), it is conducted that there are various causes of the
construction claim. Geneses of various claims often lie document of contract
that is observed to the tenders hastily created as well as sufficient attention. In the general condition
of the provision, there are no contradictions and the drawing (Hadikusumo &et.al, 2015).
Incorrect Ground Data of
Claim in Construction Industry
Incorrect Ground Data involves
the information regarding the depth conditions, where the groundwater table, temperature,
rainfall and the power of the availability of the water. The contractor
estimation is based on the ground data, the documents of the tender provide that by
depending upon the project size. Claims in construction project includes several
situations where the Incorrect Ground Data directs the contractor to perform work that
is various from work defined in a contract. For both changes as well as
variation orders that happened on a construction
project the probability of claims arise which conflict on the total cost of the project as well as a delay in
the completion date
Ambiguous Provisions and Use of Faulty or Language in Contracts
Vague
Provisions for the use of the faculty as well as the contractor’s languages must
be explicit, and it could open the
floodgate for the possible litigations.
The time of the absences is very appropriate for the provision handle that is a
technical inspection through the client as well as for the third parties.
Deviations of Claim in
Construction Industry
A Deviations contract may permit a
contractor to claim default when payment is not made accordance with a contract
(Hadikusumo &et.al, 2015) says that delay
in payments is a common problem especially during a time of economic crisis. (Hadikusumo & et.al, 2015)Showed that late
payments through an owner come in fifth place out of ten major causes affecting
construction delay in terms of cost, but come in second place in terms of
impact on time for Deviation.
Unreasonable Attitudes of
Claim in Construction Industry
Unreasonable Attitudes of the Contractors
are ordinarily expected to perform their
works efficiently as well as have the high productivity without interference,
in case owner interference in all events, a claim of interference will increase
Unreasonable Attitudes according to that. (Hadikusumo & et.al, 2015)
Contractor Being of Poor Means of
Claim in Construction Industry
A contractor constructs a
project with detailed plans as well as specifications provided in contract
documents by the poor means. Through several weakness
in the written contract will produce
confusion along with disruption to the contractor
while a contractor cannot deviate from a specification prepared through the
owner unless knowing about defects or oversight.
(Hadikusumo & et.al, 2015)
Causes of
construction claim related to the owner
of Claim
in Construction Industry
According to the author Shah &et al.(2014), various causes occur
in the construction industry where the parties are
mostly converted into the claims. Through either party of the contract, the construction claims are defined by request (Shah & et.al, 2014).
Delay caused by the owner
of Claim in Construction Industry
Delays in a construction
project are scheduled and cause huge
losses of resources while aggravation is
an everyday occurrence. Delay through the owner comes as a result of conditions
of an existing facility, which should provide proper site access or facility that are made as a part of a contract work that differs in their location sometimes when an owner directly
responsible for providing materials and
furnished equipment.
Delay in terminations of Claim in Construction Industry
During a construction project,
some causes may happen which lead to
terminate a contract that leads to a
conflict for owner or contractor directly. Shah &et al.(2014), says that in a case of contractor
default or on behalf of convenience, an
owner decides that a facility is no longer needed. During either case, a
contract should address the part’s rights in the
event of termination.
Bad Coordination and Communication between Parts of Claim in
Construction Industry
Most of the claims as several types
of research recognized, is due to
lack of communication as well as coordination
interface construction in a design phase. These lack lead to difficult access to the working
area as well as conflicts in the requirements
of various parts during constructions (Shah &et.al, 2014).
Hadikusumo, B. H., &etal. (2015). Construction
Claim Types and Causes for a Large-Scale Hydropower Project in Bhutan. Journal
of Construction in Developing Countries, 20(1), 49–63.
Husein,
A. (2013). Construction and projects in Saudi Arabia: an overview.
Khekale,
C., &etal. (2015). Management of Claims and Disputes in the Construction
Industry. International Journal of Science and Research (IJSR), 4(5),
848-856.
Shah,
A., &etal. (2014). Types and Causes of Construction Claims. International
Journal of Engineering Research & Technology (IJERT), 3(12), 732-735.
Retrieved from
https://www.ijert.org/research/types-and-causes-of-construction-claims-IJERTV3IS120582.pdf
Zeldin
, E. (2005, September 9). Construction claims in the united Arab emirates:
types, causes, and frequency. In Khosrowshahi, F (Ed.), 21st Annual ARCOM
Conference, 2, 813-22.